If you sell online to customers abroad, import goods or travel for shopping, you will meet value-added tax (VAT) or goods and services tax (GST). Rates range from a few percent to over 25%. This guide gives an overview of VAT rates around the world and shows how to calculate tax for any country with our VAT Calculator by Country tool. Rates change, so confirm with official sources before filing or invoicing.
What VAT and GST are
Both are consumption taxes added at each stage of the supply chain. Businesses collect tax on sales and deduct tax paid on purchases, so the final burden falls on the consumer. “VAT” and “GST” describe essentially the same idea.
Standard rates in selected countries
| Country | Standard rate |
|---|---|
| UAE | 5% |
| Saudi Arabia | 15% |
| Oman | 5% |
| Bahrain | 10% |
| Pakistan (sales tax on goods) | 18% |
| India (GST, common standard rate) | 18% |
| United Kingdom | 20% |
| Germany | 19% |
| France | 20% |
| Hungary | 27% |
| Australia (GST) | 10% |
| Canada (federal GST) | 5% plus provincial taxes in some provinces |
| United States | no VAT; state and local sales taxes |
Why rates differ
Governments choose VAT rates based on how much revenue they need, what other taxes they use and social goals. Many countries apply reduced rates to food, medicine or books, and exempt some services.
Calculating VAT
Price with VAT = net price × (1 + rate)
Net price = gross price ÷ (1 + rate)
A €100 item in Germany costs €119 with VAT. A SAR 230 receipt in Saudi Arabia includes SAR 30 of VAT.
Selling abroad
Many countries require foreign sellers of digital services or goods above certain thresholds to register for VAT. Rules are complex; check official guidance or consult a tax adviser.
Tourist refunds
Some countries refund VAT to tourists on goods taken home, subject to minimum spends and paperwork at the airport.
For local tax
For Pakistani sales tax specifically, the VAT Calculator is quicker. Convert foreign prices with the Currency Converter, and read VAT in the UAE and Saudi Arabia for the Gulf in detail.
Frequently asked questions
Which country has the highest VAT?
Hungary’s 27% is among the highest standard rates.
Does the USA have VAT?
No. The USA uses state and local sales taxes instead.
Is GST the same as VAT?
They work the same way; the name differs by country.